I had Schmid at 2100 GMT / 5pm US Eastern time. I won't call his speech the highlight of the session to come here, but the calendar is lacklustre. The NZ data will be the highlight otherwise. The Quarterly Survey of Business Opinion is always closely watched.
Westpac says the latest Quarterly Survey of Business Opinion (QSBO) may again test the Reserve Bank of New Zealand’s confidence in the economic outlook, warning that recent results from the influential survey have painted a mixed picture of business conditions.
The bank noted that while the QSBO is usually a reliable early gauge of economic momentum, it has recently sent conflicting signals — with firms growing more optimistic about the months ahead even as they continue to report weak recent performance. Neither measure, Westpac said, has offered a clear guide to the recent swings in GDP.
Westpac added that the QSBO’s price-pressure indicators have been an important input for the RBNZ over the past year. With the latest survey due just a day before the official cash rate decision, policymakers are expected to scrutinise the findings closely for clues on inflation trends and business sentiment.
A rate cut is expected from the Reserve Bank of New Zealand on Wednesday, New Zealand time:
